Oil prices have come under pressure as hopes of easing tensions between the United States and Iran reduce concerns about global supplies. After climbing above $100 a barrel in late October, U.S. crude has fallen toward $90, while Brent has slipped below $100. The sharp decline followed the U.S. midterm elections and signs that Washington may avoid further military action against Iran. Despite the recent sell-off, uncertainty surrounding Middle East oil shipments may create buying opportunities for investors seeking exposure to commodity-related stocks.
Three energy stocks investors may consider buying are Baytex Energy BTE, Evolution Petroleum EPM and W&T Offshore WTI. These companies offer exposure to oil and natural gas production, with Baytex operating in Canada and the United States, Evolution Petroleum holding interests in producing U.S. oil and gas properties, and W&T Offshore focusing on offshore production in the Gulf of Mexico.
Their different business models offer investors exposure to oil and natural gas markets amid changing market conditions. Moreover, all three stocks carry a Value Score of A or B, making them potential buying opportunities for value-oriented investors despite the prevailing market uncertainty.
Can Oil Prices Recover From the Recent Sell-Off?
Oil prices have fallen sharply as expectations of a possible resolution to the U.S.-Iran conflict have eased fears of major supply disruptions. The recent U.S. midterm election results raised hopes that Washington would seek to end the conflict sooner. President Donald Trump also indicated that further strikes on Iran are unlikely if negotiations make progress. These developments helped push Brent below $100 a barrel and U.S. crude toward $90, following one of the steepest weekly declines in years.
Looking ahead, oil prices remain sensitive to developments in the Middle East. Recent attacks on vessels near the Strait of Hormuz and renewed tensions involving Saudi Arabia continue to raise concerns about shipping and supply disruptions. While progress in diplomatic talks may pressure crude prices, fresh attacks could trigger another recovery. With U.S. crude trading around $90, continued supply risks may support prices, creating potential buying opportunities in select energy stocks.
Why Buy These Value-Priced Energy Stocks Under $5?
Against this backdrop, investors seeking affordable energy stocks may consider companies trading below $5 — often referred to as penny stocks — that offer attractive valuations and the potential to benefit from a recovery in oil prices. Oil and gas producers may gain from stronger crude prices and improved operating performance, making select low-priced stocks worth considering. Although these stocks carry higher risks and may experience sharp price swings, companies with reasonable valuations and sound fundamentals may present buying opportunities for investors willing to accept the uncertainty.
3 Stocks to Buy
W&T Offshore: W&T Offshore is a Houston-based oil and natural gas producer focused on offshore fields in the Gulf of America. Founded in 1983, the company operates properties in both shallow and deep waters. Its business has grown largely through buying producing fields, then using its technical experience and existing infrastructure to manage them efficiently.
Instead of relying heavily on new drilling, W&T often improves production by repairing wells, reopening productive zones and upgrading facilities. This approach helps control spending and extend the useful life of its assets. The Zacks Rank #1 (Strong Buy) company continues to look for attractive acquisitions while prioritizing cash flow, debt reduction and shareholder returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
WTI shares trade for around $3.09 as of this writing. An incredible bargain for investors, the Zacks Consensus Estimate for 2026 earnings of the company indicates 86.5% growth. W&T Offshore has a Value Score of B.
Baytex Energy: Baytex Energy is a Canadian oil and natural gas producer with operations concentrated in Alberta and Saskatchewan. Its portfolio combines heavy oil production with lighter oil resources in the Duvernay and Viking areas. Heavy oil forms the foundation of the business, while Duvernay development is becoming an increasingly important source of growth.
Baytex is expanding drilling activity as improved efficiency helps lower costs and bring new wells into production faster. It is also testing methods to recover more oil from existing fields, including water injection and thermal development. The company plans to balance production growth with disciplined spending, share buybacks and dividends.
At just over $4 per share and with a Value Score of A, Zacks Rank #2 (Buy) BTE presents an appealing option for energy sector investors looking for a stock with a reasonable valuation. The Zacks Consensus Estimate for 2026 earnings of the company indicates 213.5% growth.
Evolution Petroleum: Evolution Petroleum is an independent U.S. energy company with interests in oil and natural gas properties across several states. Rather than operating wells itself, the company partners with established producers and earns a share of production revenue. Its assets span Texas, Louisiana, Oklahoma, New Mexico, Wyoming and North Dakota, giving it exposure to different energy markets.
Evolution is also expanding its mineral and royalty holdings, which generate income from wells developed by other operators without requiring it to fund drilling. Recent purchases have strengthened its presence in the Permian Basin and Louisiana. The #2 Ranked company, with a Value Score of B, aims to support steady cash flow, selective growth and regular shareholder dividends.
With a share price of just $3.48, EPM is a stock that energy sector investors should add to their portfolio. Over the past 60 days, the Zacks Consensus Estimate for the company’s fiscal 2027 earnings has gone up 66.7%.
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W&T Offshore, Inc. (WTI): Free Stock Analysis Report
Evolution Petroleum Corporation, Inc. (EPM): Free Stock Analysis Report
Baytex Energy Corp (BTE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).